The price of Bitcoin has been on a tear the past couple of months. It has reached over $400 and looks like there may be no end in sight. Bitcoin has not seen these levels in over one year and there is a great deal of speculation as to the reason for the recent rise in the cryptocurrency.
One of the most challenging aspects in understanding Bitcoin spike is that it has no centralized exchange and currently the most active exchanges are private and located throughout the world. Bitcoin transactions are anonymous which makes it nearly impossible to identify market participants.
Some have attributed the recent rise of Bitcoin to participation from Chinese clients that are using the virtual currency as a way to get around China’s strict government controls of the movement of money. Some of the largest Bitcoin exchanges that operate in China have seen a surge in trading volume including OKCoin as well as Huboi. Many Chinese investors are still feeling the pain after the recent drop in the equity markets there and are frustrated by the recent devaluation of the CNY.
Not surprising that there are some that believe the recent Bitcoin spike might have been manipulated by some individuals with a vested interest. The Financial Times has pointed towards Sergei Mavrodi who has been convicted of Ponzi schemes in the past of running one of these sites in China MMM. This may be a response to the now infamous Mt Gox scheme which saw the subsequent fall in Bitcoin by 70%.
No matter what the reason is it looks as if Bitcoin is now back in play for some time to come. So hang on it is going to be a bumpy ride with bitcoin prices. No matter what all of the experts say it looks like bitcoin will be around for some time to come.